Today in the United States two thirds of graduating students leave colleges and universities with student debt. The Institute for College Access and Success began an initiative called “the Project on Student Debt” to estimate just how much student debt has been accumulating over the years. What they found was that the average student will graduate with $26,000 in debt and in more extreme cases, over $100,000 dollars in unpaid loans. These numbers have serious underlying implications, not only for student borrowers and their lenders but rather the entire national economy. With more than a quarter million graduating students every year, the national student debt has amassed to over $1.2 trillion dollars – or about 6 percent of the country’s total debt, and twice the size from 2007. While Americans already struggle to pay credit card and auto loan debts, the national student loan debt is larger than both, second only to mortgage loan debt. Those burdened by unpaid loans aren’t the only ones affected however, business owners, corporations and employees alike will be touched by the stresses a huge debt can put on an economy. As unpaid balances accumulate people will spend less money where they can. Consumer spending drives the economy; without it businesses will profit less, employee wages will be cut and loans will continue to go unpaid.
The looming student debt crisis isn’t very far away, either. In Catie Gutierrez testimony to the StudentDebtCrisis.org, a non-profit geared to make reforms in higher education, she wrote, “I'm 129,000 in federal student loan debt, my first job fall apart after 3 months… I'm afraid I won't have money for a new car, or to pay rent or have a normal life. I imagine myself as an adult baby living with my ...
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...tion fees were raised to help recover some cash that may be lost after tuition cuts. Additionally, NYU’s enrollment rate would increase while its admission rates would decrease, earning them a larger body of students and higher college ranking, which may in turn award NYU more money in donations than ever before.
But perhaps most importantly, by setting a trend for competitive prices in the education market NYU will have secured an invaluable long-term investment; the aggressive quality-based competition seen today suggests that universities and colleges will compete in a similarly aggressive fashion to cut tuition. While enrollment rates across the board will increase, tuition prices will decrease – a trend that will simultaneously provide an opportunity to reverse the student debt crisis, and protect those positive externalities that shape the future day to day.
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Show MoreMartin and Lehren’s article “A Generation Hobbled by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debts due to student loans. The article presents the reader with stories of former college students who have either graduated or dropped out, and their struggle to pay off their student loans. The article also talks about issues such as students not being informed about high amounts of student loans and why student debts have increased. Martin and Lehren also make the issue of student debt more intimidating by giving examples
Many Americans are seeking an ideal presidential candidate for our next election; furthermore, many college students seek a candidate that has their best interest in mind, leading many to focus on Bernie Sanders and his ideas for an affordable education system. In the article, The Myth of the Student Loan Crisis, Nicole Allan and Derek Thomas focus the article on the risky investments of college and questioning the rising debt levels as a national crisis. While Allan and Davis claim the risk of college and mention rising debt levels as a national crisis; however, Allan and Davis use charts to support their stance while avoiding the issues Americans need to focus on, such as the rising cost of college, “justifiable debt”, and the cost of those not contributing to society.
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
Everyone knows that going to college and getting a degree is the most effective and guaranteed route to ensure a prosperous financial future, right? College is considered by most to be the best investment you can make in life, but what happens when that investment leaves you drowning in thousands of dollars in debt right after graduation day. This is the situation that millions of college graduates are faced with in 2016. Rising college tuition perpetuates student debt and is on a sharp incline and it seems to have no ambition of ever slowing down. The effect of this catastrophe is felt by millions of families across the country who now question, “is college really worth it?”
An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts so that through their spending the slowly recovering economy can finally return to its pre-2008 strength.
Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job isn’t nearly as high as it used to be. Because students can no longer depend on getting a job fresh out of college, it has become harder to repay the loans. Without a steady income, these individuals have gone into debt and frequently default loans. If nothing is done to stop colleges and universities from increasing the cost of attending their school, the amount of time it takes for students to pay off their loans will become longer and longer. The extreme expenses to attend a college or university may leave a student in financial distress: which may ultimately lead to hardship in creating a living for them and affect the country’s economy.
The article, of the extreme student debt crisis, written by James B Steele and Lance Williams, is a disturbing truth fact. The student loan industry is not there to help the students get ahead. Its only goal is to line the pockets of private investors, banks and the federal government.
As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for. Many people believe those loans can be paid off in a matter of a couple years. However, this idea is misguided as many people do not pay their student loans off until their early forties.
In an article written by Andrew Lehren, the author provides the bold statement that “the only thing worse than graduating with lots of debt is not going to college at all” (Lehren). In today 's society, many families lack the funds to provide a full ride for their children in terms of college. Due to this fact, many people turn to alternate solutions such as loans or diving straight into the workforce instead of attending college at all. These solutions, however, may greatly affect a person throughout the course of their life. The problem of college debt is increasing rates in regards to tuition, however, fortunately there are various solutions accessible in order to decrease or eliminate the debt that many american students face.
Children of the twenty first century spend nearly 13 years in school, preparing for what is college, one of the only ways to achieve the so-called “American Dream”. College is the best way to start an advanced career and go further than one possibly could if college degrees were not available, allowing people to achieve their view of the American Dream; whether it be large houses, shiny cars, multiple kids, or financial comfort, college is the stepping stone to achieve the American Dream. But all great things come with a price, college dragging along debt. Students who attend college struggle to find ways to pay for it, leading to applying for student loans. These loans a great short term, paying for the schooling at the moment but eventually the money adds up
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
Being forced to move back home after college graduation is one of many obstacles students face while getting accustomed to the new debt they inherit after school. Imagine, upon graduation of high school the excitement one must feel about finally being away from the watchful eye of mama and papa bird. Headed to college to live on their own, freedom to be an adult and make decisions as such. If lucky enough to be one of the one’s who will make it through the entire four years of higher learning with a degree, evidence of long nights, dedication, and hard work, great rewards are expected, right? Wrong, many students in modern society will be met with a harsh reality and be bound to the nest which they took flight from four years prior. Student loans will become the new chain holding them captive to their parents. Unable to afford to live independently right after college graduation is a price some must pay for pursuing higher education.
Student debt has become a growing problem for the economy in the past years; it cannot be completely solve, but the increasing rate can reduce by giving a student loan limit for those who are at a higher risk of dropping out, implement high school students an obligatory orientation on financial aid, and put on severe consequences for those who are able to payback their loans but chose not to.
As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements). The debt will only continue to grow with neglect, so the most effective action to take would be eliminating the cost altogether.
With the ever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesis statement will concentrate on the view that the education policymakers should improve financial aid programs and minimize the risks and adverse consequences of student loan borrowing.